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Caixin Financial News, October 28th (Reporter Liu Yue): With an increase in gross profit, Baoding Tianwei Baobian Electric (600550.SH), known as the "restructuring demon stock" that soared 10 consecutive limit up days last month, turned a loss into a profit in the first three quarters, with a net income exceeding 80 million yuan. The performance in Q3 was even more outstanding, achieving a new quarterly high since 2020 with a net income of over 60 million yuan.

Baoding Tianwei Baobian Electric announced tonight that the company's revenue in the first three quarters reached 3.173 billion yuan, a year-on-year increase of 54.85%; the net income was 84.3988 million yuan, turning from a net loss of 72.7427 million yuan in the same period last year to a profit.

Looking at the quarterly performance, Q3 had an impressive performance with significant increases both year-on-year and quarter-on-quarter, reaching a new quarterly net income high since 2020. The net income in Q3 was 61.61 million yuan, while in Q2 it was 20.69 million yuan. This results in a quarter-on-quarter net income growth of 197.8% in Q3.

Regarding the reasons for the growth in performance, Baoding Tianwei Baobian Electric stated in the announcement that the year-on-year revenue growth was mainly due to the continuous realization of product orders by the company; the return to profit was mainly due to the increase in operating income and product gross profit. When responding on the interactive platform this month to the question of "In which aspects has net income improved this year," Baoding Tianwei Baobian Electric stated that the company has intensified market development efforts, and product orders will be gradually realized in sales in 2024.

Looking at the historical performance, Baoding Tianwei Baobian Electric's performance has fluctuated significantly in recent years. This year, the profit exceeded 80 million yuan in the first three quarters, while the full year loss exceeded 200 million last year. The profits for the years 2019-2022 were 15.21 million yuan, 21.13 million yuan, 43.41 million yuan, and 29.51 million yuan respectively.

Public information shows that Baoding Tianwei Baobian Electric's main business is in the transformer business, mainly manufacturing and selling large power transformers and accessories, with main products being 110kV-1000kV ultra-high voltage and large capacity transformers.

The third quarter report shows that the arms equipment group directly holds 53.98% of the shares, and indirectly holds a total of 3.4% through its subsidiaries. It is worth noting that as early as the evening of September 1st, Baoding Tianwei Baobian Electric received a notice from its controlling shareholder that the arms equipment group is integrating the power transmission and transformation equipment business with China Electric Equipment, which may lead to a change in the company's controlling shareholder. Baoding Tianwei Baobian Electric thereby skyrocketed to become a restructuring concept 'magic stock', closing at the daily limit for 14 consecutive days on September 23rd.

The company's progress announcement yesterday showed that the arms equipment group and China Electric Equipment have signed an 'Agreement on Enterprise State-owned Equity Donation Transfer'. As of now, the donation transfer is still in progress, and the transfer of donated shares has not been completed. Both the arms equipment group and China Electric Equipment are handling the relevant work related to the donation transfer matters.

Public information shows that the Electric Equipment Group, which may hold a controlling stake in Baoding Tianwei Baobian Electric, currently holds controlling stakes in multiple A-share listed companies, including China XD Electric (601179.SH), XJ Electric (000400.SZ), and Henan Pinggao Electric (600312.SH).